Some Basics on Employee Benefits

As an immigrant we are faced with so many decisions. When we get our first job and are lucky enough to be offered benefits, it can be overwhelming knowing what to choose. This is a summary of benefit terms and why you should consider the benefit.

Name	Definition	Why you should consider it
Health Insurance	This insurance covers the cost of physicians, surgeons and the hospital.	It will cover the cost of basic healthcare and protect you from incurring huge bills incase of a serious health condition. According to a Harvard University study, medical expenses cause 62% of bankruptcies in the US.
Dental Insurance	This insurance covers a percentage of the cost of dental insurance	It will cover your costs for routine dental visits and dental conditions
Vision Insurance	This insurance covers the cost of glasses, eye exams, contacts and other eye care	It will cover your cost for eye care. Any eye disease is covered under medical care. Vision is mainly for correcting vision.
Healthcare Flexible Spending Account	This is a tax -favored account that allows employees to have pre-tax deductions to cover additional healthcare expenses.	It reduces your taxable expense and covers your out of pocket expenses for medical, dental and vision. Click here to see the list of eligible expenses. Click here to estimate your potential tax savings.
Dependent reimbursement account	This accounts allows parents to be reimbursed on a pre-tax basis for childcare and adult day care expenses.	It reduces your taxable income and allows to systematically put money aside for child or adult day care expenses.
Basic Life Insurance	Most companies offer their employees basic life insurance that is paid out to their beneficiary in the event of the person’s death.	It reduces the effects of the loss of the income in the event of death
Supplemental Life Insurance	Supplemental life insurance is additional insurance policy that an individual purchases to increase the amount of their total life insurance policy	It reduces the effects of the loss of income in the event of death. This can be purchased through the employer who usually has cheaper rates. Make sure you confirm that the insurance is portable if you change jobs before making a decision on the amount.
Accidental Death and Dismemberment Insurance	This is an insurance policy that pays benefits in the event of an accident that kills the policy holder or if they lose limbs, sight, fingers or are paralyzed	This policy is pretty inexpensive through your employer and protects your family if you are seriously injured due to an accident and cannot continue working.
Short-term disability	This policy pays a percentage of your salary if you are disabled for less than 26 weeks. The duration the benefit is paid and the percentage of this policy varies.	This policy is especially useful for people who are planning to have children or have health issues that may keep them out of work for a length of time.
Long-term disability	This policy pays a percentage of your salary if you are disabled for more than 26 weeks. The percentage varies and is usually a little less than short-term disability. The duration also varies.	This policy is especially important to consider in the case that you are out of work for more than 6 months due to an illness. The effects of a long term loss of income can be very serious for a family that has not yet built a solid foundation.
Long Term Care	This is an insurance product that pays for your care if you become disabled for have a chronic illness and cannot take care of yourself. It covers those who need help with daily living activities such as bathing, feeding and others.	This policy provides for your care in a nursing home, assisted living or in your own home. Long-term care is very expensive and the more serious the condition, the higher the cost.
401(k)	This is the tax-favored plan that allows you to save towards your retirement. It is offered by for-profit organizations.	The company usually provides a match up to 3 or 6% to your contributions. Consider it an automatic raise. It is also a reduction of your taxable income.
403(b)	This is a tax favored plan that allows you to save for retirement if you work in a public education organization or the non-profit sector.	It reduces your taxable income and is a supplement to the pension provided by public organizations.
Roth 401(K)	This is an option that may be offered by some employers which allows employees to save after tax contributions for retirement. The account allows for contributions to grow and to be distributed tax-free	It is an interesting option to consider especially if you have many years before retirement and can make the maximum contributions upfront because the growth on your account is tax-free. Click this calculator to figure out of the Roth 401(k) for you.

Other things you need to know

• If you decline a benefit, then you can only enroll again during open enrollment. Ask your HR department when open enrollment is.
• If you decline certain insurance policies, you may need to go through a medical exam to enroll later.
• You have 31 days to add a new dependent during the plan year or you have to wait for open enrollment. Keep this in mind if you get married or have a baby.

We will talk about these benefits in more detail in future blog posts. This list is not an exhaustive list, if you have seen one that you want more information on, let us know in the comment section and we will research it for you.

Passion

I am sitting in my living room watching Larry King. His interview is based on a new movie called Conviction. The story surrounds a woman who went to law school to fight for her brother's freedom. It brings me back to something I think about very often.... Passion.

The word has become a buzzword for our times and I am not sure if I know what it really means. Whatever it means, I know that I need it. I think we all need it. We all need something to live for and having something to live for can change our whole life. I came from a culture where people do the right things and do what they need to do. I think as important as that is, we all need to spend some time thinking about what really sparks something in us and why?

I look back at my life in the US and I see how much it would have helped me to have really considered my passion instead of just going after what I had already been exposed to or what would make me money. Over the next couple of weeks I will interview some of my friends who love what they do and feel that they have something to live for and others who make a lot of money yet feel like they are dying inside. It is possible to have both so keep reading.

Check out this article to help you take the first step to picking your college major.

Did You Know?

There are many resources out there, some of them even free, but it can be really hard to find them. From time to time we will post in this section any resources that we think may be of interest to you. Today’s focus is on health.

1. To support your resolution to lose weight and eat healthy, it’s important to read food labels. But what do they mean? This article will help you figure it out. http://www.cnn.com/2008/HEALTH/10/22/tool.food.labels/index.html

2. Who knew that there are salads worse than a whopper? Don’t sabotage your weight loss efforts by eating any of these salads. http://eatthis.menshealth.com/slideshow/salads-worse-whopper

3. Do you know how to read your blood tests? Check out this interactive article but don’t try and self-diagnose yourself. Instead use it to ask better questions and understand what your doctor is talking about. http://www.nytimes.com/interactive/2008/09/29/health/20080929_BLOODEXAM.html

4. As health care costs continue to escalate, it may be time to negotiate the price the doctor charges you. This New York Times article gives some pointers for the negotiation. http://www.nytimes.com/2011/01/08/health/policy/08patient.html

5. To find fair prices for various health care services in your area, check out http://healthcarebluebook.com/, the “Kelley Blue Book” for health care. Use this information to negotiate with your doctor and to find cheaper health care providers.

A Word from Socrates

A friend posted this quote on Facebook and it got me thinking........

Employ your time in improving yourself by other men's writings, so that you shall gain easily what others have labored hard for.
Socrates

It got me thinking about the years I have spent in the US and everything I have learnt. I do wish that I had read other men’s writings about what to expect and how to adjust because it would have saved me many days of laboring and trying to figure things out on my own. We hope you have enjoyed reading this blog this week. We will bring you a collection of lessons and thoughts from various sources that may save you from some days of laboring and not having to learn every lesson through experience. We will bring you profiles of people who are willing to share how they achieved success in different areas. We hope you find a nugget or two on practical living in a different culture. We also look forward to you sharing your experiences with us. Enjoy the conversation!

Being an immigrant sometimes really messes with your head . . .

This is the first installment of our "Conversation Fridays" series. The topic will change each week. Be part of the conversation by adding your comments! (Here's how you post a comment.)

Red Jade: Being an immigrant sometimes really messes with your head. Sometimes I don't know where I belong. My family thinks I am too American but Americans think/know I am not American - too foreign they say!

Rafiki: I feel that way often. I am not American enough neither am I Kenyan enough. It can be hard to find a place.

Red Jade: And yet, I am not trying to choose because I can't deny the influence of the culture I was raised up in and the influence of the culture I now find myself in . . . have been in for the last 15 years!

Rafiki: I have learnt to create a new normal that embraces where I was born and where I live now. These things make me the person that I am. I no longer feel the pressure to choose. When was the first time you realized you had changed?

Red Jade: Probably when I reached the point where I had the courage to live my life on my own terms, rather than to live by what was expected of me. I don't think it was being here in the US per se that created that. I think it could have happened in any other country. Rather it was because being away from home, I really learnt how to live on my own and to rely on myself.

Rafiki: We eventually come into our own but living away from home definitely accelerates the process. I was in school with Americans most of my first year in the US. At some point I spent time with some Kenyans that had just arrived and we seemed worlds apart. I was surprised I felt so different after one year. Change happens fast especially when you immerse yourself in the culture and learn as much as you can. Do you think we can live in a different country and not change at all? What are the consequences of that?

Red Jade: The key word is "immersion". Your degree of immersion will determine how much the new culture influences you. And immersion can be by choice or necessity. I think to flourish in a new place, you need to immerse yourself. Think about a new job, your chances of success are higher if you fit into the work culture and you can either already fit in when you walk in the door or you can work at it. Obviously it's better to be proactive rather than reactive so I would prefer to choose whether to immerse myself. If nothing else, it means that you are somehow controlling the influences around you.

Rafiki: That makes a lot of sense and immersion does not necessarily mean embracing every new thing. It means being clear about what you have to do and why. It also means that you are clear who you are, which will ground you. There is so much to see and learn and it can get overwhelming if you are not clear about what will be beneficial to you and what will not be beneficial. It is also important to identify sub cultures so that you decide how you want to be identified. Industries have subcultures; for example working in a bank is very different from working in an ad agency and we need to do different things to adapt. I love something I once heard that gave me some sort of new identity: we are children of the world. That was pretty cool.

Red Jade: Yeah, I definitely consider myself a world citizen. I used to read a lot as a kid and I visited many places and experienced many cultures through all that reading. I think even before I left home, I had "changed" in my mind and my heart, even though my lifestyle may not have shown that.

Rafiki: We are the beginning of a new generation of people who will live in many places, have relationships with people from all over the world and identify with various cultures. My world has definitely been enriched by the experience and as long as I am not trying to fit into a certain mold or be a certain way I can be at home with myself and accept the new normal. We can learn, grow and change without losing ourselves. What has changed the most about you?

Red Jade: I definitely appreciate the opportunity to have had all the experiences I have had, and my life is so much richer. The biggest change I have experienced is self-development and through that I have learnt that there is more to life than just making a living. Now I am focused on achieving Maslow's highest identified need of "Self-Actualization".

Rafiki: The journey to self-actualization continues, I cannot wait to see what we become from the influences of multiple worlds which will forever be a part of who we are. I bet there are numerous stories out there about how people deal with living between two worlds.

Red Jade: Want to join the conversation? How has being away from home changed you? When was the moment that you realized the change? What has the reaction of your family at home been? How do you navigate between the different cultures? Post a comment to join the conversation.

I don’t buy anything on sale….

.....unless I would have paid full price for it, at which point it becomes a must buy!

Before you start thinking that I have lost my mind, allow me to explain...

The “End of Year” Sales are still going strong and for most of us, clothes shopping is a major budget buster. We spend a lot of our money shopping and try and rationalize our spending by telling ourselves and anyone who cares to listen, “I got a good deal, I bought it on sale”. But if you didn’t need it to start with, then you just wasted your money, regardless of how little you actually spent.

Recently, what I have found works for me financially but not necessarily fashionably (I am still working on that) is to take the time to develop a carefully curated shopping list. I ask myself, “What do I need this season?” I then come up with a very detailed list that includes colors and fabrics e.g. a black satchel style handbag, dark long jeans to wear with heels, brown tweed work pants.

I try to create a list that will fill the gaps in my closet, work harmoniously with other pieces and allow me to indulge in one or two trends for the season. Armed with the list, then it’s time to start shopping. I spend a lot of time searching online for styles I like before I actually hit the stores. However, I rarely buy things online because I like to feel the fabric and study the construction. Apart from the trendy items, I look for quality pieces that can last a while. I have found that taking the time to develop the list makes it easier to identify pieces that will not meet my needs. No more impulse buys that will sit in my closet with the tags still on (and I sure have had plenty of those).

Once I start the actual shopping, it is very clear to see that all those cute items on the sale rack that do not match what’s on my previously determined list, are a total waste of money. If it wasn’t on the list it means that I don’t need it - even at 70% off! That sale item is still a waste of the 30% plus tax that I still have to pay for it. You can apply the same rationale to whatever your shopping weakness is – electronics, books, furniture etc.

As immigrants we often have to save a little more than our non-immigrant family and friends. Many of us send money back home regularly to support our extended families. One also has to be prepared for the emergencies that come up such as family medical bills or a death in the family that requires the purchase of an expensive last minute flight home. Watching your clothes budget is one way to help you save a little extra money every month. Buy only what you truly need and you will find it easier to meet your financial goals.

What is your shopping weakness? Create a needs list (not a shopping list!) and don't leave home without it.

What Inspires Us?

We are inspired by people’s stories....how did they get where they are? how do they do what they do?

Every month we will bring you stories of people, fellow immigrants like you and me, who are doing remarkable things.

Let their stories inspire us to reach for the best within ourselves.

Artist Unknown. Source: www.mymodernmet.com

Share your stories with us at: themakutilounge@gmail.com.

Landing the First Job

People always say that the first million is the most difficult to make. This is also true for getting a first job in a new country. Immigrants have to keep certain things in mind when they are looking for a new job. The things to consider are...

What are my transferable skills? 

This is the most obvious thing when rewriting a resume. It is important to find out how the skills you already have translate in your new culture. If you sold insurance in a different country, you could highlight your sales skill without emphasizing the industry especially if the standards are different. 

What is my final destination and what do I need to do to get there? 

If you want to be a lawyer then you want to work on your communication skills. Therefore it would be important to find a job that builds those skills such as waiting tables. If you want to be a nurse then it may make sense to start a career in a hospital setting as a sitter. 

What skills can I acquire quickly?

Is there an affordable course that you can take for a few weeks which will provide stable employment while you are working towards your final goal. 

How do I present myself?

It is important to find out the interview attire for the country you have moved to and more importantly for the company you will be interviewing with. Less is more when it comes to dressing. Find a classic outfit that will be tasteful in various environments. You can change the accessories depending on the industry.  Besides the impression you make with your dress, write down all the things you have going for you and be prepared to discuss them confidently during the interview. Many people have to step out of their comfort zone to sell themselves. Remember you have already taken a big step by crossing the seas/border.  

How to research the company?

You need to know following

• The company's main product
• When it was formed and by whom? 
• What industry it is in? 
• The top officers
• Their revenues and past growth 

How to find the opportunities in my area?

It is important to know the job market climate in your new city. You need to know how people get interviews,  the best places to look and how to network. You also need to know the people in your community that can help you and connect with them. 

If you need to brush up on your computer skills, many staffing agencies offer free classes if you are registered with them. Attend job fairs to polish up on your sales skills and tell everyone you know that you are looking for a job. There are many websites that have job listings such as 

• Monster
• Career Builder
• Craigslist
• Linkedin
• Industry specific organizations
• Jobing

The other sources for jobs are the biggest churches in your area. Find out who the coordinator for the jobs ministry is and make a connection. Join organizations in your field to form relationships. Network, network, network!

Happy job hunting in 2011!  We will talk about landing your first job after graduating college in a few weeks.  

Timeless Wisdom on Priorities

Proverbs 24:27
Finish your outdoor work 
and get your fields ready; 
after that, build your house. NIV

I have heard the phrase “there is nothing new under the sun” many times. I do not think I have lived long enough to truly test it but it has been true up to this point. This ancient truth in the bible can be very helpful for immigrants that want to create a life in a new country.

It is so important to be clear about your priorities especially when you see the possibilities. Sometimes the temptation is to want to have everything at once. I suggest you consider how you will make a living long term before you start to build a life for yourself. I have seen many people come and get a first job which pays a decent wage then go about acquiring things that make it impossible for them to change jobs or make a move. While certain things such as cars are a necessity in some cities, it may make sense to wait to purchase a home until you are clear about your goals.

When setting priorities, consider the following questions:
• Where do I see myself in the next five years?
• What sacrifices do I need to make to get there?
• What mental attitude and aptitude do I need to get there? How do I continually cultivate it?
• What tools do I need to achieve these goals?
• What are my options?

Do not be afraid to analyze your options and really consider the immediate gratification you are losing out on. Make a choice to pursue your goals because you have a clear picture on what life will be like once you achieve them. Cars, furniture, clothes can be acquired at any time. However to really sharpen your craft needs time. In the end, it will not make a difference when you bought your house, or when you bought your dream car. These things only make a small temporary impression.

The big question is; are you living the life you had envisioned? If you are not, what was the price of your dream? It is never too late to make that change.

Did You Know ?

There are many resources out there, some of them even free, but it can be really hard to find them. From time to time we will post in this section any resources that we think may be of interest to you. To kick off, here are 5 resources:

1. For the avid readers among us, check out Project Gutenberg where you can download eBooks for free onto your computer, cell phone, ipad or other such device. To download go to http://www.gutenberg.org/wiki/Main_Page.

2. For free online course materials from one of the best universities in the world, check out Open Courseware at MIT (Massachusetts Institute of Technology). According to the university, “MIT Open Courseware (OCW) is a web-based free publication of course materials that reflects almost all the undergraduate and graduate subjects taught at MIT.” This is a powerful resource to supplement your current educational endeavors as well as continuing education opportunities. To get started click on http://ocw.mit.edu/help/get-started-with-ocw/.

3. The school semester is about to start and many parents are concerned about the spate of bullying that seems to be increasing with every semester. Check out this link http://www.thesucculentwife.com/please-stop-laughing-at-me-a-bullied-girls-memoir/ for a review of the book, “Please Stop Laughing at Me” – A Bullied Girl’s Memoir” by Jodee Blanco. The link also shares an excerpt from an article by the same author “School Bullying — Tips Every Parent Should Know”.

4. Edinburg Business School at Heriot-Watt University in the UK has an online MBA program that looks very attractive. Fees are charged per course depending on where you live. For example, a student in Kenya would pay $550 per course while a student in the USA would pay $ 1395 for the same course.
According to the New York Times, http://www.nytimes.com/2010/09/20/business/global/20iht-educLede20.html, this program is “considered one of the world’s best distance-learning business degrees”. The school also offers full online scholarships to qualified students resident in sub-Saharan Africa. For more information go to http://www.ebsglobal.net/programmes/mba-distance-learning.

5. Groupon is a website that offers specific deals on specific days in specific cities. It allows customers to enjoy steep discounts if enough people sign up for a particular deal. As always read the fine print, and call the merchant if you do not understand the deal offered. Check it out at www.groupon.com.

Do you have what it takes to succeed in 2011?

Courage, chutzpah, guts….whatever you call it, you need it big and you need it now more than ever. Many of us are at a major crossroads in our lives. Here in the USA, the country is still reeling from the recession and the recovery is slow and painful. Many of us have felt the effect in lost jobs and opportunities, most of which the pundits say will not be coming back. We need to learn new skills or even move to new towns to take advantage of the new opportunities that will develop as the economy recovers. That’s tough to do, even in good times.

On an individual level, many of us feel our personal lives are also lacking in one or more areas: family, career, financial, happiness, spiritual. But most of us fail to realize that our own actions are responsible for the lack that we feel. We are too scared to go for what we want. We settle for less because we are afraid to take the risk.

According to the Merriam-Webster dictionary, courage is the “mental or moral strength to venture, persevere, and withstand danger, fear, or difficulty”. It is this strength that we are lacking when we give up too quickly. It is this same lack that makes us walk away when we encounter difficulties in our work, in our relationships, and in our search for meaning in our lives. It is this strength that we lack when we take the easy way out instead of the doing the right thing and standing by our principles.

Courage takes work, it is not for the faint-hearted or those looking for easy wins. This strength is like a muscle that you have to train every day. Exercise your courage every day in the little things, and when you are faced with major decisions you will find yourself prepared to tackle them. Let us resolve to be courageous in the pursuit of our likes and equally courageous in relinquishing our hates so that we can expand our lives.

Life shrinks or expands in proportion to one's courage.
-Anais Nin.

With the New Year there is a need to move forward, to put the tough year behind us. We usher in the new year with hope that 2011 will be better than 2010, but hope is not enough. What we really need is courage to fight for the things that are important to us, to make the changes that are important to us.

When you need courage, take a deep breath and remind yourself how important the action is to you, and how your life will shrink or expand depending on what you decide to do. Regardless of where your courage meter lies right now, think back to a time when you tackled something fearlessly. Channel that energy to other areas in your life where you might be afraid to do something.

This blog is a leap of courage for us. Our individual dreams of writing remained unfulfilled until our decision to move forward together. And our lives have been greatly enriched by this step. So this New Year’s day we invite you to join us on this journey and hope that you in turn invite us to share in your own journeys. By sharing what we have learnt, by learning from you our dear readers, we hope and trust that knowledge and inspiration will strengthen us individually and collectively so that we may all expand our lives.

It takes courage to grow up and become who you really are.
-e. e. cummings

If you make one resolution today, resolve to develop and exercise your courage every day in both the little things and the big things. Please share with us your own stories of courage and the difference it has made in your life.

We wish you a wonderful New Year, filled with all the courage and chutzpah you need to follow your dreams.